The Marcos administration successfully tapped international capital markets on Tuesday, Jan. 21, raising $2.75 billion through a triple-tranche dollar bond offering aimed at front-loading its 2026 financing requirements.

The sovereign issuer took advantage of a period of relative calm in global credit markets to lock in borrowing costs before potential volatility later in the year. The sale was anchored by a $1.5 billion offering of 10-year notes maturing in January 2036.

Those bonds were issued with a five percent coupon and priced at 99.325 percent of face value to yield 5.087 percent, representing a spread of 80 basis points over the 10-year United States Treasury benchmark. The government expects to net approximately $1.49 billion from this specific tranche before expenses.

For the shortest end of the curve, the Philippines sold $500 million in five-year senior unsecured bonds due July 2031. These notes carry a 4.25 percent interest rate and were priced at 99.53 percent of par, resulting in a re-offer yield of 4.347 percent. This reflected a premium of 50 basis points over the comparable US Treasury.

The government rounded out the offering with $750 million in long-dated bonds maturing in 2051. These 25-year notes were issued at par with a 5.75 percent coupon, priced at a spread of 83.3 basis points over the 30-year US Treasury. All three tranches are scheduled for settlement on Jan. 27, 2026, according to final term sheets.

Jonathan Ravelas, senior adviser at Reyes Tacandong & Co., said the timing of the issuance was sensible.

He noted that the transaction allowed the Bureau of the Treasury to secure a clean window for funding before global economic uncertainty potentially intensifies.

Ravelas added that strong investor receptivity to recent emerging market issuances provided a favorable environment for the Philippines to secure longer-term financing at competitive rates.

The offshore fundraising comes as the administration of President Ferdinand Marcos Jr. pursues an aggressive borrowing plan to fund infrastructure projects and manage existing debt.

Under the national government’s 2026 financing program, the Philippines is targeting ₱302.1 billion in borrowings from offshore bonds and other external sources. This represents a 61.3 percent increase from the ₱187.2 billion external borrowing goal set for 2025, signaling a more heavy reliance on foreign capital to support the nation's fiscal agenda.